Small business loan schemes for women entrepreneurs: With more than 50% of the entrepreneurs who attended the recent Global entrepreneurship summit 2019 being women, it is clearly evident that women entrepreneurs can be seen every sphere of business world. There were few countries that were represented by only women at the GES that took place in Hyderabad this year.
There are many women who run their families alongside carrying a small and mid-sized business to make their livelihood. To help and give encouragement to more women to take up such self-run businesses, many banks in India have some separate small business loan schemes for women. Few popular schemes of this sort are discussed below:
Small business loan schemes for women entrepreneurs
1. Annapurna scheme:
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Feature
Details
1
Offering bank
This is scheme is offered by state bank of Mysore (Now SBI)
2
Purpose of the loan
As the name suggests, this loan is offered to the women who want to set up a food catering business such as selling packed foods, snacks and daily meals etc
3
Loan amount
The maximum amount provided under this loan is ₹ 50,000.
4
Installments
The loan can be repaid in 36 installments
5
1st month – No EMI
After the loan amount is disbursed, EMI is not required to be paid for the 1st month
6
Interest rate
It will be decided by the bank as per prevailing market rate
7
Collateral security
Assets of the business would acts as collateral security for the loan in addition to a mandatory guarantor
2. Stree Shakti Package:
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Feature
Details
1
Offering bank
State bank of India
2
Purpose of the loan
This is meant for empowering the women by offering 3 concessions. An enterprise should have more than 50% of its ownership by women to qualify for the scheme
3
Concessions
The margin will be lowered by 5% as applicable to separate categories.
For tiny sector units, No security is required for loans up to ₹ 5 lakh
If the loan exceeds ₹ 2 lakhs, interest rate will be lowered by 0.5%
3. Business loan by BMB:
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Feature
Details
1
Offered by
Bharatiya Mahila Bank ( Now merged into SBI)
2
Purpose
The loan is sanctioned to the women entrepreneurs to start their new businesses in the areas such as retail, manufacturing etc.
3
Maximum loan
An amount up to ₹ 20 crores is sanctioned for manufacturing ventures
4
Concession in interest
Concession is available to the extent of 0.25% on the interest rate
5
Collateral free?
If you apply under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), there is no requirement of collateral security for a loan of up to ₹ 1 crore
4. Shakti:
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Feature
Details
1
Offered by
Dena Bank
2
Purpose
Loans under this scheme are sanctioned to women entrepreneurs engaging in manufacturing, agriculture and retails etc.
3
Maximum Loan amount
Loans of micro credit nature sanction up to ₹ 50,000 while an amount of up to ₹ 20 lakhs is disbursed for retail trade
4
Concession in interest
Concession is available to the extent of 0.25% on the interest rate
5. Cent Kalyani:
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Feature
Details
1
Offered by
Central Bank of India
2
Purpose
Loans under this scheme are sanctioned to women for starting a new business or expanding or modifying an existing venture. Women engaged in village and cottage industries, micro, small and medium enterprises, agriculture and allied activities, retail trade, and any government sponsored schemes are eligible for this scheme.
3
Maximum loan amount
Eligible women can avail up to ₹ 1 crore.
4
Collateral
No collateral security is required. Also, the loan processing fee is nil
6. Udyogini:
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Feature
Details
1
Offered by
Punjab and Sind Bank
2
Purpose
To provide financial assistance to women entrepreneurs engaged in agriculture, retail and small business enterprises
3
Age criteria
Applicant should be of the age group 18 – 45 years
